Photo-Me issues profit warning as Brexit uncertainty takes its toll on orders
Photobooth firm Photo-Me has warned its full-year profit will be lower than expected due to a slowdown in consumer activity amid Brexit uncertainty.
The firm said it expects to snap up a pre-tax profit of £42m for the year to the end of April, slightly below its previous guidance of £44m, sending its shares down more than three per cent in early trading.
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Photo-Me, which also operates self-service laundry machines and children’s rides, had previously warned of a delay in order decision, but said it expected these to recover in the second half of the year.
But the Surrey-based company today said the slowdown in consumer activity, driven by Brexit uncertainty, meant a recovery in order levels is no longer in the picture.
“Overall trading in the UK has become more challenging than expected in the second half of the year reflecting the slowdown in consumer activity as a result of continuing uncertainty around the UK's European Union exit negotiations,” the firm said in a statement.
Photo-Me has embarked on a strategy to expand its high margin self-service laundry business, which it hopes will account for an increasing proportion of profits.
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Despite the warning, the company said its operations in Europe and Asia are growing in line with expectations, while a restructuring plan has driven strong performance in Japan.
Photo-Me said it will announce its results for the full year in July.